Press Releases

Jan042012

WASHINGTON –U.S. Senator John Boozman (R-AR) said President Obama committed a “gross overstep” with today’s unprecedented recess appointment of Richard Cordray as director of the new Consumer Financial Protection Board (CFPB), a move made for the first time while the Senate is in “pro forma” session.

“This is a gross overstep by the President. Steamrolling the Constitution and rewriting the rules when you don’t get your way is not how democracy works. We have a system of checks and balances that President Obama has failed to respect through this abuse of power,” Boozman said.

Last month, the Senate voted on whether to proceed with consideration of the nomination of Richard Cordray. Mr. Cordray’s nomination failed to garner enough votes to move forward, so today President Obama unilaterally appointed him to the position.

“Mr. Cordray’s nomination was taken up in the Senate and was not approved. I joined my colleagues in opposition, not on the basis of Mr. Cordray’s personal merits, but over concerns about the structure of this new agency. The Dodd-Frank Law has given the CFPB enormous powers with little to no accountability. Instead of working with us to fix this defectively structured agency, the President has chosen to continue his misguided practice of circumventing Congress,” Boozman said.

The CFPB was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which President Obama signed into law last year. As a member of the U.S. House of Representatives, Boozman voted against that bill because it would create permanent bailouts, reward failed regulators and make it more difficult for consumers to access credit.